Next few years will decide future of Vietnam's semiconductor industry

On July 31, Vietnam's efforts in pursuing its semiconductor aspirations were highlighted as industry experts gathered at a seminar on building the semiconductor industry ecosystem at Hanoi University of Science and Technology.

At the gathering, experts concurred that the upcoming three years are critical for Vietnam’s semiconductor ecosystem to make significant strides.

“Although Vietnam has entered the ecosystem, it has only contributed human resources, not the entire market,” said Nguyen Thanh Yen, CEO of semiconductor design services provider CoAsia Semi. “Vietnam has successfully attracted many major semiconductor corporations over the years, not because it is a potential commercial market, but because these tech giants choose to invest and expand here. Samsung, Intel, Hana, and Micron come to Vietnam primarily to leverage its workforce.”

Yen added that the industry could face a shortage of about half a million chip engineers by 2030, presenting a unique opportunity for Vietnam to excel in the semiconductor landscape.

According to Chu Duc Trinh, rector of the University of Engineering and Technology at Vietnam National University Hanoi, while human resources are Vietnam's key attraction for leading global corporations, the time to capitalise on this advantage is running out.

“The next few years are Vietnam’s last chance. With signs of an ageing population, if Vietnam doesn’t seize this opportunity, it will grow old before it grows rich,” he stated.

Despite the opportunities, Trinh pointed out that Vietnam's suppliers are not keeping pace with their foreign counterparts.

“To build a strong semiconductor ecosystem, Vietnam still needs to attract foreign-invested enterprises but must also have strategies to foster the development of Vietnamese enterprises,” Trinh said. “When I work with large foreign corporations, they express a desire to find local suppliers to collaborate with, but Vietnam currently lacks suppliers that can meet their standards.”

Yen of CoAsia Semi echoed this sentiment, suggesting that Vietnamese graduates often lack a comprehensive understanding of their jobs, indicating that academic programmes are not aligned with industry needs.

“If students only learn theoretical knowledge and only receive practical training when they start working, it is too late. Educational institutions need to equip students early with both professional skills and soft skills, along with work culture,” Yen said.

The experts believe that to enhance the workforce's capabilities, universities need to incorporate practical knowledge from enterprises into their curricula, allowing students to gain industrial-scale production experience before graduation.

Additionally, Vietnam needs to pay special attention to small- and medium-sized domestic enterprises. Without nurturing and having good policies for these businesses, developing the entire ecosystem will be challenging.

“The reason why Taiwan and South Korea have developed into semiconductor hubs today is due to substantial government support, which played a crucial role. The governments of these markets did not view investment as a means to seek profit but looked at the development of the entire semiconductor ecosystem,” Trinh added.

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